Here are Thursday’s biggest analyst calls of the day: Apple, Tesla, CSX, Under Armour, Target & more

Here are Thursday’s biggest calls on Wall Street: Stifel downgrades Target to hold from buy Stifel downgraded the big box retailer after its disappointing earnings report on Wednesday. “We downgrade shares of Target to Hold and reduce our 2022-2023 EPS estimates meaningfully and our price target to $185, 14x 2023E EPS reflecting limited near-term visibility on costs and consumer trends.” Morgan Stanley downgrades Under Armour to equal weight from overweight Morgan Stanley said it has lower confidence in a turnaround for Under Armour after the company announced its CEO departure on Wednesday. “Pre-Covid challenges, the transition quarter miss & disappointing guide, & today’s CEO departure impair our confidence in the turnaround.” Read more about this call here. Bank of America reiterates Apple as buy Bank of America lowered its price target on the stock to $200 per share from $215 and said it’s iPhone estimates have been too conservative with continued strong growth for Apple. “Reiterate Buy on multiple tailwinds on both hardware and services (user growth, average selling price, and increased penetration of Installed Base).” RBC reiterates Microsoft as outperform RBC said after a meeting with the company that it thinks Microsoft “would prove resilient in a recession.” “We hosted virtual investor meetings with Microsoft investor relations. Our key takeaways include: 1) no change to macro / demand commentary, and we believe the business model would prove resilient in the case of a recession; 2) impact from salary increases are minimal, and we still expect margin expansion in FY23.” Bank of America reiterates Carvana as buy Bank of America said in a note that investors should stick with the stock despite the company’s recent missteps. “We think opportunity is still ahead as CVNA builds out more reconditioning centers to capture share of the 40mn annual used car market from highly fragmented competitors.” Oppenheimer reiterates Nvidia as outperform Oppenheimer said in a note to clients that it’s bullish heading into earnings on May 25. “Our long-term thesis remains intact as NVDA’ s core leading gaming and AI accelerator franchises remain positioned for outsized structural growth.” Barclays reiterates Meta and Amazon as overweight Barclays said that Amazon has the best risk-reward outlook in the internet space. The firm also said that Meta was its top long idea. “We think FB sets up as the best long idea right now in the group, simply because estimates are likely to head upward in coming prints, in contrast to others in the group. … AMZN still represents the best risk/reward in our space and has the best chance for positive narrative change on the upcoming print.” Cowen reiterates Ulta as a top pick Cowen said in a note that Ulta is “recession resistant.” “We also like the large beauty TAM (total addressable market) and expect beauty to grow at a healthy rate. In the near-term, we believe beauty should benefit from going out trends.” Morgan Stanley reiterates Snowflake as overweight Morgan Stanley said in a note on Thursday that it had “higher conviction” in the cloud computing data warehouse company. “Our channel checks were largely positive on Snowflake for the quarter, suggesting the demand environment remains robust.” Citi downgrades Canadian Pacific, CSX and Union Pacific to neutral from buy Citi downgraded several rail stocks on Thursday due to a “decelerating freight/economic environment.” “We are downgrading US rails CSX , N orfolk Southern and Union Pacific to Neutral from Buy. … We see some near-term risk in a decelerating freight/economic environment as rail valuation has actually improved relative to the market and earnings growth expectations are the highest.” Read more about this call here. Cowen names Yum Brands as a top pick Cowen named the owner of brands like Taco Bell as a top pick and said it likes the company’s investment profile amid an “inflationary backdrop with limited visibility in relief.” “In our view, Yum shares have broad investor appeal, offering a diversified stream of franchise revenue from a 98% franchised business model across 290 brand/country combinations.” Wedbush reiterates Tesla as outperform Wedbush lowered its price target on Tesla to $1,000 from $1,400, noting it’s still bullish on the stock but can’t ignore the company’s issues in China. “We are seeing a myriad of issues across the whole supply chain based on our work in China including the logistics angle once Model 3’s/Y’s are ready for shipments and deliveries.” DA Davidson downgrades Winnebago to neutral from buy DA Davidson said in its downgrade of Winnebago that its survey checks show a deceleration in RV sales. “From conversations with our RV industry contacts, we learned April RV retail sales were likely weaker than March as retail has continued to decelerate throughout this year.” Raymond James adds Allstate to the analyst focus list Raymond James added the insurance company to its focus list and says the company is well-positioned due to “management’s aggressive rate increases.” “While Allstate’ s auto results have experienced headwinds due to last year’s rate decreases/paybacks and inflationary pressures on auto severity, we believe management’s aggressive rate increases, which began in 4Q21, should position the company to report y/y improvements in profitability results beginning in 2H22.”

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